LOEWS CORP (L) Stock Fundamental Analysis
NYSE:L - New York Stock Exchange, Inc. - US5404241086 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to L. L was compared to 143 industry peers in the Insurance industry. While L is still in line with the averages on profitability rating, there are concerns on its financial health. L is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
L had positive earnings in the past year.
L had a positive operating cash flow in the past year.
L had positive earnings in 4 of the past 5 years.
Each year in the past 5 years L had a positive operating cash flow.
1.2 Ratios
The Return On Assets of L (1.60%) is comparable to the rest of the industry.
L has a Return On Equity of 7.72%. This is comparable to the rest of the industry: L outperforms 40.56% of its industry peers.
L's Return On Invested Capital of 2.11% is in line compared to the rest of the industry. L outperforms 50.35% of its industry peers.
L had an Average Return On Invested Capital over the past 3 years of 2.05%. This is below the industry average of 4.27%.
The 3 year average ROIC (2.05%) for L is below the current ROIC(2.11%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.6% | ||
| ROE | 7.72% | ||
| ROIC | 2.11% |
ROA(3y)1.54%
ROA(5y)1.08%
ROE(3y)7.72%
ROE(5y)5.34%
ROIC(3y)2.05%
ROIC(5y)N/A
1.3 Margins
L has a Profit Margin of 7.44%. This is comparable to the rest of the industry: L outperforms 53.15% of its industry peers.
L's Profit Margin has improved in the last couple of years.
L has a Operating Margin (12.47%) which is in line with its industry peers.
L's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.47% | ||
| PM (TTM) | 7.44% | ||
| GM | N/A |
OM growth 3Y-9.39%
OM growth 5Y2.96%
PM growth 3Y-8.85%
PM growth 5Y5.2%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
L has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for L has been reduced compared to 1 year ago.
L has less shares outstanding than it did 5 years ago.
L has a better debt/assets ratio than last year.
2.2 Solvency
L has a debt to FCF ratio of 2.99. This is a good value and a sign of high solvency as L would need 2.99 years to pay back of all of its debts.
L has a Debt to FCF ratio of 2.99. This is in the lower half of the industry: L underperforms 60.84% of its industry peers.
L has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
L has a worse Debt to Equity ratio (0.49) than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.99 | ||
| Altman-Z | N/A |
ROIC/WACC0.29
WACC7.41%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for L have decreased by -9.64% in the last year.
Measured over the past years, L shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.42% on average per year.
L shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.89%.
The Revenue has been growing slightly by 3.32% on average over the past years.
EPS 1Y (TTM)-9.64%
EPS 3Y2.23%
EPS 5Y13.42%
EPS Q2Q%-15.12%
Revenue 1Y (TTM)8.89%
Revenue growth 3Y6.13%
Revenue growth 5Y3.32%
Sales Q2Q%6.22%
3.2 Future
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
L is valuated correctly with a Price/Earnings ratio of 14.38.
Compared to the rest of the industry, the Price/Earnings ratio of L is on the same level as its industry peers.
L is valuated rather cheaply when we compare the Price/Earnings ratio to 26.03, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.38 | ||
| Fwd PE | N/A |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as L.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of L indicates a somewhat cheap valuation: L is cheaper than 63.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.16 | ||
| EV/EBITDA | 9.56 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.07
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.28%, L is not a good candidate for dividend investing.
L's Dividend Yield is slightly below the industry average, which is at 3.17.
Compared to an average S&P500 Dividend Yield of 2.36, L's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.28% |
5.2 History
The dividend of L decreases each year by -0.02%.
L has paid a dividend for at least 10 years, which is a reliable track record.
L has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-0.02%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
L pays out 4.07% of its income as dividend. This is a sustainable payout ratio.
DP4.07%
EPS Next 2YN/A
EPS Next 3YN/A
87.59
-0.14 (-0.16%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners60.2%
Inst Owner Change-2.74%
Ins Owners15.04%
Ins Owner Change0.51%
Market Cap18.42B
Analysts42.86
Price TargetN/A
Short Float %1.06%
Short Ratio2.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.28% |
Yearly Dividend0.25
Dividend Growth(5Y)-0.02%
DP4.07%
Div Incr Years0
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.38 | ||
| Fwd PE | N/A | ||
| P/S | 1.03 | ||
| P/FCF | 6.16 | ||
| P/OCF | 5.17 | ||
| P/B | 1.07 | ||
| P/tB | 1.09 | ||
| EV/EBITDA | 9.56 |
EPS(TTM)6.09
EY6.95%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)14.22
FCFY16.24%
OCF(TTM)16.94
OCFY19.34%
SpS84.74
BVpS81.73
TBVpS80.08
PEG (NY)N/A
PEG (5Y)1.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.6% | ||
| ROE | 7.72% | ||
| ROCE | 2.69% | ||
| ROIC | 2.11% | ||
| ROICexc | 2.13% | ||
| ROICexgc | 2.26% | ||
| OM | 12.47% | ||
| PM (TTM) | 7.44% | ||
| GM | N/A | ||
| FCFM | 16.79% |
ROA(3y)1.54%
ROA(5y)1.08%
ROE(3y)7.72%
ROE(5y)5.34%
ROIC(3y)2.05%
ROIC(5y)N/A
ROICexc(3y)2.06%
ROICexc(5y)N/A
ROICexgc(3y)2.18%
ROICexgc(5y)N/A
ROCE(3y)2.61%
ROCE(5y)N/A
ROICexcg growth 3Y-3.69%
ROICexcg growth 5Y6.65%
ROICexc growth 3Y-4.01%
ROICexc growth 5Y6.41%
OM growth 3Y-9.39%
OM growth 5Y2.96%
PM growth 3Y-8.85%
PM growth 5Y5.2%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.99 | ||
| Debt/EBITDA | 3.01 | ||
| Cap/Depr | 97.94% | ||
| Cap/Sales | 3.2% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 126.98% | ||
| Profit Quality | 225.47% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC7.41%
ROIC/WACC0.29
Cap/Depr(3y)121.86%
Cap/Depr(5y)111.18%
Cap/Sales(3y)4.18%
Cap/Sales(5y)4.28%
Profit Quality(3y)238.91%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-9.64%
EPS 3Y2.23%
EPS 5Y13.42%
EPS Q2Q%-15.12%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)8.89%
Revenue growth 3Y6.13%
Revenue growth 5Y3.32%
Sales Q2Q%6.22%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-7.1%
EBIT growth 3Y-3.83%
EBIT growth 5Y6.37%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y2.75%
FCF growth 3Y3.78%
FCF growth 5Y27.87%
OCF growth 1Y-1.3%
OCF growth 3Y4.87%
OCF growth 5Y11.68%